Macerich (MAC) AI Stock Analysis

• Market Cap: $4.27B
• Dividend Yield: 4.31%
• Average Volume (3M): 1.72M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.47
• Revenue Growth: 9.58%
• EPS Growth: -3.85%
• Country: US
• Employees: 615
• Sector: Real Estate
• Sector Strength: 69
• Industry: REIT - Retail
• EPS (TTM): -0.20
• Shares Outstanding: 252,648,790
• 10 Day Avg. Volume: 1,507,328
• 30 Day Avg. Volume: 1,715,660
• PEG Ratio: 0.06
• Price to Book (P/B): 1.29
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 13.56
• Enterprise Value/Market Cap: 2.06
• Enterprise Value/Revenue: 2.47
• Enterprise Value/Gross Profit: 20.98
• Enterprise Value/Ebitda: 2.97
• 1Y Price Target: $16.77
• Price Target Upside: 3.58% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 9

• Rating: 58 Neutral
• Price Target: $16.50 ▲(1.91%Upside)

The overall score for MAC is driven by stable financial performance and positive earnings call highlights, offset by valuation challenges due to negative earnings and high leverage. The technical indicators show mixed signals, with the stock trading below key moving averages. Recent corporate events provide a positive outlook on strategic initiatives, but profitability and occupancy remain areas to watch.

Positive Factors

Financial Health

Progress on the balance sheet with a new $340 million 10-year mortgage loan at a lower interest rate shows improved financial health.

Financial Performance

Base minimum rents grew to $160 million, which was better than the estimated $156 million, indicating stronger than expected performance.

Leasing Activity

Strong leasing volumes with a 156% increase over last year signify robust business activity.

Negative Factors

Interest Costs

Rising interest costs may be the largest headwind to achieving $1.80 of FFO in the next 3-4 years.

Occupancy

Portfolio occupancy was 92.6%, reflecting a decline of 80 basis points year-over-year and 150 basis points quarter-over-quarter.

SSNOI Growth

SSNOI growth of -0.4% YoY was a bit of surprise, which may explain some of the stock weakness.

Macerich Business Overview & Revenue Model

Company Description

Macerich (MAC) is a leading real estate investment trust (REIT) in the United States, specializing in the acquisition, leasing, management, development, and redevelopment of premium shopping centers. The company is primarily focused on high-quality retail properties located in densely populated urban and suburban markets. Macerich's portfolio includes iconic malls and shopping centers that serve as community hubs, offering a mix of retail, dining, entertainment, and experiential attractions.

How the Company Makes Money

Macerich generates revenue primarily through leasing space in its shopping centers to a diverse range of retail tenants. The company earns rental income from long-term lease agreements with retailers, which can include fixed base rents, percentage rents based on tenant sales, and reimbursement of property operating expenses. Additionally, Macerich benefits from ancillary income streams such as parking fees, advertising, and sponsorships within its properties. The company's strategic focus on high-traffic, affluent markets helps maximize occupancy rates and rental rates, contributing to its financial performance. Macerich also engages in redevelopment projects to enhance and modernize its properties, which can increase property value and attract premium tenants. Partnerships with leading retailers and brands further bolster Macerich's market presence and revenue potential.

Macerich Financial Statement Overview

Summary

Macerich's financial health presents a complex picture. While the company has maintained high gross margins, persistent net losses, and zero cash flow generation in the latest period highlight challenges in profitability and liquidity. The elimination of debt in 2024 significantly improved leverage metrics, which is positive for financial stability. However, the lack of cash flow and continued net losses suggest operational adjustments are necessary to improve financial resilience.

Income Statement

Macerich shows a mixed performance in terms of profitability. The Gross Profit Margin has remained strong, with 95.5% in 2024, but the company has struggled with net profitability, as evidenced by consecutive net losses. Revenue growth was minimal at 4.2% from 2023 to 2024, suggesting limited top-line expansion. Despite strong EBIT and EBITDA margins in 2024 (66.6% and 98.7% respectively), the net income remains negative, indicating challenges in managing costs or debt-associated expenses.

Balance Sheet

The balance sheet reflects a solid equity base with an equity ratio of 32.2% in 2024, showing reliance on equity financing. However, the Debt-to-Equity ratio improved significantly to 0.00 due to zero debt reported in 2024, which may indicate strategic deleveraging. Return on Equity is negative, highlighting profitability issues despite improved equity standing.

Cash Flow

Cash flow metrics indicate some concerns. Operating Cash Flow to Net Income ratio could not be assessed since Operating Cash Flow was zero in 2024. Free Cash Flow growth cannot be determined due to zero Free Cash Flow reported. This lack of operational cash flow and free cash flow points to potential liquidity management issues.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
918.20M	881.37M	859.16M	847.44M	786.03M
	Gross Profit
487.94M	486.48M	468.81M	466.55M	438.05M
	EBIT
4.84M	0.00	144.78M	141.06M	-102.25M
	EBITDA
326.90M	190.72M	436.39M	452.19M	155.70M
	Net Income Common Stockholders
-194.12M	-274.06M	-65.08M	14.26M	-245.46M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
89.86M	94.94M	100.32M	112.45M	465.30M
	Total Assets
8.57B	7.51B	8.09B	8.35B	9.18B
	Total Debt
5.06B	4.31B	4.50B	4.61B	6.13B
	Net Debt
4.97B	4.21B	4.40B	4.50B	5.66B
	Total Liabilities
5.72B	4.99B	5.14B	5.17B	6.74B
	Stockholders Equity
2.76B	2.45B	2.87B	3.05B	2.26B
Cash Flow		Free Cash Flow
283.44M	295.50M	239.61M	175.44M	53.32M
	Operating Cash Flow
283.44M	295.50M	337.51M	286.37M	124.84M
	Investing Cash Flow
19.79M	52.54M	-1.40M	234.97M	-202.85M
	Financing Cash Flow
-316.05M	-338.89M	-321.94M	-837.02M	446.45M

Macerich Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 16.19
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For MAC, the sentiment is Positive. The current price of 16.19 is above the 20-day moving average (MA) of 15.45, above the 50-day MA of 15.49, and below the 200-day MA of 17.71, indicating a neutral trend. The MACD of 0.10 indicates Negative momentum. The RSI at 57.95 is Neutral, neither overbought nor oversold. The STOCH value of 68.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for MAC.

Macerich Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SBRA	76 Outperform	$4.19B	29.79	5.15%	6.90%	7.81%	179.16%
PECO	73 Outperform	$4.90B	63.35	3.09%	3.46%	9.27%	19.51%
KRG	68 Neutral	$4.82B	356.17	0.81%	4.79%	4.37%	-75.82%
CUZ	66 Neutral	$4.76B	84.68	1.15%	4.60%	10.93%	-31.07%
IRT	61 Neutral	$4.42B	139.49	0.87%	3.50%	-2.94%	―
Sector *	61 Neutral	$2.80B	10.80	0.50%	8507.83%	5.68%	-20.85%
MAC	58 Neutral	$4.27B	―	-4.79%	4.31%	9.58%	-3.85%

Macerich Corporate Events

Macerich Updates Path Forward Plan for Class A Malls

On May 29, 2025, Macerich made available an investor presentation detailing its Path Forward Plan update, emphasizing its strategic focus on Class A malls. The company is well-positioned in the top-performing retail real estate segment, with 92% of its net operating income derived from A or higher-tier properties, highlighting its resilience and growth potential in the evolving retail landscape.

The most recent analyst rating on (MAC) stock is a Hold with a $16.00 price target. To see the full list of analyst forecasts on Macerich stock, see the MAC Stock Forecast page.

Macerich Reports Improved Q1 2025 Financial Results

For the first quarter of 2025, The Macerich Company reported a net loss of $50.1 million, a significant improvement from the $126.7 million loss in the same period of 2024. The company saw a 156% increase in leased square footage compared to the previous year, driven by strong renewal leasing volume. Despite a slight decrease in portfolio occupancy to 92.6%, new store leases are expected to generate approximately $80 million in additional revenue over prior uses. The company also engaged in several financial transactions, including a new $340 million mortgage loan and the sale of two assets, enhancing liquidity to approximately $995 million.

The most recent analyst rating on (MAC) stock is a Sell with a $11.0000 price target. To see the full list of analyst forecasts on Macerich stock, see the MAC Stock Forecast page.

Macerich Director Eric Brandt Announces Departure

On March 12, 2025, Eric K. Brandt informed the Board of Directors of The Macerich Company that he will not seek re-election at the 2025 annual meeting of stockholders. Mr. Brandt, who has been a director since 2018 and serves as chair of the capital allocation committee and a member of the compensation committee, will maintain his roles until the meeting. His decision was not due to any disagreements with the company. Consequently, the Board will reduce its size from nine to eight members after the meeting. The company expressed gratitude for Mr. Brandt’s contributions.